Tesla pulls out of EU funding for German plant

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Tesla pulls out of EU funding for German plant

This may include adverts from us and 3rd parties based on our understanding. The electric vehicle and energy company is building a manufacturing plant in Gr nheide, outside Berlin. The EU planned to approve funding worth over a billion euro as part of the second European battery cell programme IPCEI But Tesla announced on Friday that it wouldn't be taking the money, according to the German government. A spokeswoman for the German government told Der Tagesspiegel on Friday that the aid for the project in Gr nheide had been approved by the European Commission. The German government has pledged to contribute 120 million euros to the fund. According to the Financial Times,Tesla was forced to turn down European subsidies after delays to its battery plant project breached a condition of the funding.

The EU requires all sites with receipt of its funds to be the first industrial deployment of the technology. In part due to legal difficulties, Tesla is likely to begin producing the batteries sooner, in breach of the funding agreement. In May, Tesla CEO Elon Musk blamed delays to the production of the plant outside Berlin on EU red tape. He said that he thinks there could be less bureaucracy, that would be better. READ MORE: Macron urged to start another trade war over 'threatened' sector.

He stated that the rules were immortal despite pulling out of its application for funding, Tesla has said it will continue with its work. The company said Tesla is still working on its plans for the battery and recycling factory in Gigafactory Berlin-Brandenburg. This may work in Tesla's benefit, with the company being free from the conditions that come with granted funding.